My Lords, it is a great privilege to be able to speak in this debate, which, for me, will be most memorable for the excellent valedictory speech of my noble friend Lord Cavendish of Furness. He is much respected on all sides of your Lordships’ House, and his wise and sensible interventions will be greatly missed.
I congratulate my noble friend the Lord Privy Seal on introducing the debate with a powerful speech that fully recognised the significance of the occasion. I also add my congratulations to those of other noble Lords for the triumph of the Prime Minister, my noble friend Lord Frost and his team, and all those who have worked so hard for so long to ensure that the majority of the population’s will, as expressed in the 2016 referendum and confirmed by the stunning election victory in November 2019, has been honoured in full. It is immensely reassuring for business that free trade in goods, without tariffs or quotas, will continue.
I have felt for a long time, since soon after I first went to work in Japan 40 years ago, and when I worked in Brussels, that we were uncomfortable passengers
on the European train because we did not agree with most of our fellow passengers on the ultimate destination. I am delighted we have finally recognised that fact and had the courage to get off the train.
Many have expressed an opinion that the trade and co-operation agreement is somewhat thin in its services chapter. I do not think that matters much. Will the EU really put politics ahead of economics and try to stop Daimler or Axa raising funds in London’s capital markets? Anyway, the single market is only partially constructed as far as services are concerned. Furthermore, the EU has been including political as well as technical and economic criteria in its equivalence assessments. As a financial services practitioner, I agree strongly with the views expressed by my noble friend Lady Morrissey but completely fail to recognise the financial world described by the noble Baroness, Lady Kramer.
Does my noble friend agree that it is important that the UK’s regulators, rather than continuing with special pleading for equivalence, should urgently start work on devising a simpler, principles-based, innovation-friendly, more British style of financial regulation, consigning the cumbersome, expensive and complicated MiFID II, AIFMD, EMIR and UCITS to the dustbin in the process, in order to retain the UK’s position as the world’s leading financial centre and recognising that its competitors are New York, Dubai, Singapore, Shanghai and Hong Kong rather than Paris and Frankfurt? We need to adopt a completely different regulatory style and framework rather than continue with cloned copies of EU rules based on individual regulations and directives.
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